Maryland Gets Approval To Operate Health Exchange

Maryland Gets Approval To Operate Health Exchange

Lt. Gov. Anthony Brown announced Monday that Maryland has received conditional approval by the federal government to operate a state-based health insurance exchange. (Photo Courtesy of WBAL-TV)

State officials expect as many as 150,000 people are expected to enroll in qualified health plans during the first year of the exchange. (AP Photo)

Lt. Gov. Anthony Brown announced Monday that Maryland has received conditional approval by the federal government to operate a state-based health insurance exchange.

The Centers for Medicare and Medicaid Services has certified for the Maryland Health Connection to operate the first plan year in 2014. The Centers for Medicare and Medicaid Services is an agency within the U.S. Department of Health and Human Services that is responsible for overseeing the Medicare and Medicaid programs-- the nation's largest health insurance programs.

State officials say the Maryland Health Connection will be an online portal in which individuals, families, and small businesses can compare health insurance options.

Additionally, officials say that the portal will allow people to determine their eligibility for tax credits, make cost-sharing reductions, and enroll in qualified health plans or public programs, such as Medicaid and the Children's Health Insurance Program-- starting in October 2013 for coverage effective January 2014.

"Our progress has been the result of insurance producers, carriers, third-party administrators, health care providers, advocates, and consumers coming together to build a marketplace that will best meet the needs of individuals and small businesses throughout Maryland," Brown said.

U.S. Health and Human Services Secretary Kathleen Sebelius described the approval as a significant milestone toward establishing an exchange in Maryland.

"Conditional approval reflects the substantial progress the Maryland Health Benefit Exchange has made and an expectation that MHBE will be ready to provide affordable, quality coverage for consumers and small businesses in 2014," Sebelius said in a statement included in the state's announcement.

Maryland is among the one of six states to get the approval. Other states that have received conditional approval, include Colorado, Connecticut, Massachusetts, Oregon, and Washington.

State officials say as many as 150,000 people are expected to enroll in qualified health plans during the first year of the Maryland Health Benefit Exchange.

By, 2020, they estimate that an additional 275,000 people will be enrolled.